Bill Text: TX HB2590 | 2013-2014 | 83rd Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the foreclosure sale of property subject to an oil or gas lease.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Vetoed) 2013-06-14 - Vetoed by the Governor [HB2590 Detail]

Download: Texas-2013-HB2590-Comm_Sub.html
  83R26599 JAM-D
 
  By: Keffer H.B. No. 2590
 
  Substitute the following for H.B. No. 2590:
 
  By:  Burnam C.S.H.B. No. 2590
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the foreclosure sale of property subject to oil or gas
  lease.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 5, Property Code, is amended by
  adding Chapter 66 to read as follows:
  CHAPTER 66. SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE
         Sec. 66.001.  SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE.
  (a) Notwithstanding any other law, an oil or gas lease covering
  real property subject to a security interest that has been
  foreclosed remains in effect after the foreclosure sale if the oil
  or gas lease has not terminated or expired on its own terms and:
               (1)  was executed and recorded in the real property
  records of the county before the date the security interest was
  recorded; or
               (2)  was executed and recorded in the real property
  records of the county after the date the security interest was
  recorded but before the foreclosure sale.
         (b)  Any royalty payment due to the owner of the real
  property under an oil or gas lease shall be paid to the purchaser of
  the foreclosed real property.
         (c)  The lessee of the oil or gas lease shall indemnify the
  purchaser and any mortgagee of the foreclosed real property from
  actual damages resulting from the lessee's operations conducted
  pursuant to the oil or gas lease.
         (d)  If an oil or gas lease is executed and recorded in the
  real property records of the county after the date a security
  interest in the affected real property is recorded and the affected
  real property is subsequently sold in a foreclosure sale, the
  foreclosure sale terminates and extinguishes the lessee's right to
  use the surface of the real property pursuant to the oil or gas
  lease.
         (e)  A subordination agreement between a lessee of an oil or
  gas lease and a mortgagee of real property controls over any
  conflicting provision of this section.
         SECTION 2.  Chapter 66, Property Code, as added by this Act,
  applies only with respect to a foreclosure sale for which the notice
  of sale is given under Section 51.002, Property Code, on or after
  the effective date of this Act or a judicial foreclosure for which
  the judicial foreclosure action commenced on or after the effective
  date of this Act.
         SECTION 3.  This Act takes effect January 1, 2014.
feedback